Rogue Trader Costs Swiss Bank UBS $2 BillionPosted October 4th, 2011
Revelations that a rogue trader at UBS drained over $2 billion from the bank through unauthorized trading sent the bank’s stock spiraling last week and may have pushed the bank into an unprofitable third quarter.
The suspect, Kweku Adoboli, who worked in ETFs, is being held by police in London on charges of fraud by abuse of position and false accounting. In addition to the investigation being conducted by the Crown Prosecution Service, which prosecutes criminal cases investigated by the police in England and Wales, the case is also being investigated by the U.K.’s Financial Services Authority (similar to the SEC/FINRA in the U.S.) and the Serious Fraud Office (an independent Government department that investigates and prosecutes serious or complex fraud and corruption).
Read this complete analysis of the impact at AdvisorFX (sign up for a free trial subscription with full access to all of the planning libraries and client presentations if you are not already a subscriber).
For previous coverage of scandals and scams in Advisor’s Journal, see Three Advisors Sentenced to Prison for Faith-Based Scam (CC 10-126) and STOLI Scheme Lands Insurance Agent in Jail (CC 11-92).